Date:01/12/2003 URL: http://www.thehindu.com/2003/12/01/stories/2003120101850300.htm

Southern States - Karnataka

MLA seeks release of subsidy for tiny industries

By Our Staff Correspondent

MANGALORE NOV. 30. The MLA, N. Yogish Bhat, has said that the State Government should take steps to release the Rs. 400-crore subsidy due to small-scale industries.

Presiding over the valedictory function of "Kanara Industrial Fair 2003" at the Bykampady Industrial Area here on Saturday, Mr. Bhat said of the amount, the share of small-scale industries in Dakshina Kannada was Rs. 18 crore. The absence of the Minister for Small-Scale Industries, Roshan Baig, at the function showed the inability of the Government to face the queries by entrepreneurs in this regard, he added.

He said 50 per cent of small-scale industries in the State had closed down, 40 per cent incurred losses, and only 10 per cent made meagre profits. Stating that small-scale industries were subjected to inspection by many agencies, Mr. Bhat urged the Government to formulate a common exit policy for them.

Noting that the organisers of the fair had spent Rs. 23 lakh on the three-day event, he said the Centre had released Rs. nine lakh for the purpose. The State Government did not honour its promise to provide Rs. two lakh to organise the event.

Mr. Bhat urged the State Government to withdraw its proposal to impose a tax of 50 paise on every unit of power produced through captive generation units. He appealed to the State Government and the Centre to help small-scale industries overcome the crisis. These units played a vital role in creating self-employment and achieving economic self-reliance, he added.

P.K. Goel, Adviser, Department of Small-Scale Industries, Union Government, said the share of small-scale industries in supplying goods to the Defence sector ranged from Rs. 1,000 crore to Rs. 1,200 crore of the total business of Rs. 15,000 crore a year.

He said this was an area where small-scale industries could expand their business without the fear of any global trade agreement. He announced that the next national exposition on outsourcing and vendor development would be held in Bangalore. There was a move to organise a global small-scale industries' meet in Allahabad. The member-countries of South Asian Association for Regional Cooperation were expected to participate in it. He urged the representatives of local small-scale industries to participate in the event. The member of the Railway Board, P.K. Bhargava, said the Railways purchased goods worth crores of rupees from small-scale industries. They could play a vital role in meeting the demands of the Railways, he added.

The Chief Materials Manager (Railways), Surinder Singh, explained the modalities adopted by the Railways in outsourcing goods.